Samsung Electro-Mechanics plans to invest a combined 6.78 trillion won (approximately $5.0 billion) in Sejong and Vietnam to expand production of high-value FC-BGA semiconductor substrates for AI, servers and automotive electronics. The company’s board approved 4.27 trillion won on the 28th for package-substrate facilities at its Sejong plant. The project, Samsung Electro-Mechanics’ largest single-product investment, will run through May 31, 2028, with mass production scheduled to begin in September 2028. The investment equals 43.6% of the company’s 9.7973 trillion won in consolidated shareholders’ equity last year. A further 2.51 trillion won will be invested through the company’s Vietnamese manufacturing unit to build package-substrate facilities at its existing site, with completion scheduled for April 30, 2028. The projects are intended to increase domestic and overseas capacity as generative AI drives demand for AI accelerators, server CPUs and other high-performance semiconductors. The expansion is based on medium- to long-term cooperation with a global big tech customer that includes funding support and guaranteed volumes. Samsung Electro-Mechanics also supplies MLCCs, and recently signed its largest-ever MLCC contract, worth 1.0722 trillion won ($764 million). FnGuide’s consensus projects third-quarter operating profit of 605 billion won ($431 million), while KB Securities forecasts 660.1 billion won and iM Securities expects 650 billion won.